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Condo Advice (pg. 4)
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| samhouse |
This is a decision Lauren and myself are looking at. We are not quite ready yet but almost there. I think we will be going with a condo...for a few years atleast.
The California condos on Queensway have sparked our interest but like Mark said the deposit is almost $25,000 |
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| The Highroller |
| quote: | Originally posted by Skipper
he just can't justify essentially tripling his monthly living expenses to acquire an asset that is arguably hugely inflated in value. |
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| MKpacha |
| quote: | Originally posted by VDub
Well can't be South Beach as they've not even broken ground yet... |
South Beach is a great project! (And yes they already have broken ground :) ) |
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| magikb |
| quote: | Originally posted by VERTiG0
What about condos NOT in Toronto? Still a bad idea? |
It really depends what you want Cale. You can get houses here for a decent cost but you have to deal with all of the maintenance yourself, but if you score like I did, my condo fees are only 145$ a month. That includes maintenance and water, I pay hydro myself.
Property taxes are generally pretty cheap here and I can close my door after working all day long and not have to deal with anything outdoors.
The downfalls are though for me are not having a yard so I have to go up and down the elevator with my dog all the time. I don't have any storage space or a balcony so in the next year I will consider a house so I can have all this.
I have had this place for almost 9 years now and I don't think it was a bad decision at all, I just want more in a home now then I did when I was 22. |
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| patpicos |
| quote: | Originally posted by 1dawoman
Jealous of you. Those numbers look like real estate prices of Toronto in the 1980s...
wish my work was close to Burlington... |
Ill sell you my house for 170. Nice bungalow, freshly done basement :) .... but u have to move to Welland lol |
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| mute79 |
its frightening how many ppl willingly ignore the cost of owning vehicles in their evaluation of their property or investment
$600/month over 25 years = $180k!
and $600 is a very conservative estimate including car payments, gas, repairs, insurance, etc.. in actuality its more like $750/month.. and it seems like the norm for living in the suburbs is to own a minimum of two vehicles! |
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| rabbitjoker |
| quote: | Originally posted by ChemEnhanced
don't buy a condo |
Buy 2 condos! :D |
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| Jayx1 |
| quote: | Originally posted by mute79
its frightening how many ppl willingly ignore the cost of owning vehicles in their evaluation of their property or investment
$600/month over 25 years = $180k!
and $600 is a very conservative estimate including car payments, gas, repairs, insurance, etc.. in actuality its more like $750/month.. and it seems like the norm for living in the suburbs is to own a minimum of two vehicles! |
id own a car either way... i wont be a slave to the ttc and its inferior service. |
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| Skipper |
| quote: | Originally posted by Beings
Umm what about comparing the quality of living?!
Sure you can rent out a cheap hole, and put all the savings into a savings account. That works for building equity. But what if you dont want to live in a hole? Rent out a condo? Most decent condos cost very similar to rent compared to just paying the mortgage maintenance and taxes yourself. And with real estate you do build equity.
A house is a better investment, but a single guy doenst need a house. Condos can be good. |
True, condos are generally way nicer than an apartment where you'd get a decent amt of savings on the monthly costs - however my apartment, while modest, costs $1200/mth. 2 small bedrooms, massive deck, great area, amazing landlord. I just cant justify it.. |
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| Sasha |
| i spend just over 1k on my car per month |
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| DigiNut |
Some advice from somebody who's actually gone through this and knows what he's talking about (lol @ all the renters chiming in):
New construction will save you a HUGE amount of money, and in spite of what some of the financial gurus here are telling you, you'll most likely have made a decent profit by the day you take possession. My information comes from my own condo, which is brand-spankin' new (moved in at the end of '07 and most units weren't finished until around April '08), and from people who are actually in the real-estate market, including family members who have no reason to colour the truth and business contacts who can't make up.
Simply stated, it's a good financial move. For me, given the quadruple leverage of the mortgage, I've made a return of about 80% on my initial capital, with nowhere near the kind of risk associated with more volatile equities.
There are still risks, obviously, and I don't mean to downplay those, but all investments are risky and you can do a lot worse than a new-construction condo in the GTA.
Now, having said that, money isn't everything. If you go for the new construction option you will have to deal with a load of headaches. Just off the top of my head:
- They drive you crazy with the upgrade process. If they're offering exactly what you want, then you're golden, but if you try to step even a tiny bit outside their standard, be prepared for endless arguments and stonewalling. The builder is not interested in your satisfaction after you've already signed a deal; he is interested only in keeping things as simple and straightforward as possible for the contractors. I replaced a toilet once while construction was still going on elsewhere in the building and ended up in a pissing match with their project manager.
- Speaking of toilets, and other plumbing fixtures, you'll probably have very little choice over what they put in, and what they put in is almost always crap (may or may not be the case in a pre-owned condo).
- You will have to take occupancy long before the construction is actually finished, and you will have to deal with all the hassles of literally being in a construction zone (noise, unfinished areas, waiting forever for the elevator, you get the idea)
- During the occupancy period you will have to pay occupancy fees, which is effectively the same as rent. It may be several months before you actually take possession. None of this goes toward your equity - you're basically pissing away money, and it's at the builder's mortgage rate, which will be higher than yours.
- Condo fees will go up almost right away. You can take whatever estimate they gave you, rip it up and burn it, because that's how relevant it'll be after your first year of occupancy.
- When you sign a builder's contract, you sign away all your rights, including the majority of tax incentives you might be eligible for. My closing document is literally 10 pages of explanations of all the miscellaneous expenses I had to pay for. It doesn't negate the ROI of new construction, but nevertheless it will surprise and annoy you. Enlist a good real-estate lawyer so you'll understand it all.
- Be prepared for a total cluster with respect to common areas during the first 6 months to 1 year. IIRC, it took 2 weeks before I got a working garage door opener and 3 months before I could access my locker. Electrical, HVAC, security, elevators, fire alarms - you can bet that at least one and probably several of those things will up.
- Part of this is luck, but condo boards can be unstable for the first couple of years due to people not knowing what the hell they're doing. And if you've got a lousy condo board, you're in for all sorts of problems down the road. This can happen in an older condo too, but it's more likely with a new one.
- Edit: And, oh yeah, I forgot to mention all of the in-suite repairs you'll have to deal with once you move in, because they will screw it up. You don't have to pay for any of it, but it's a pain.
I'm probably making this sound worse than it really is, but the point I do want to make is that new construction is not for the faint of heart. Some builders are better than others, but no matter what you buy, you'll need to have a pretty high stress tolerance.
In the end, what it all comes down to is how much convenience you're willing to trade for money. When I bought my condo, money meant a lot to me, I was just a few years out of university with a relatively modest savings and really wanted a half-decent space. The whole point was to break into the market. If I had to make the same decision today, though, I would definitely go for pre-owned (preferably 3-5 years).
Hope that helps. |
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| 1dawoman |
| quote: | Originally posted by DigiNut
If I had to make the same decision today, though, I would definitely go for pre-owned (preferably 3-5 years).
Hope that helps. |
It did.
While reading this, I tried to picture myself dealing with those problems and living under those circumstances and it really doesn't seem worth it for me, despite the savings. I am by no means a picky person that will get worked up over fixtures and what not, but the moving in before construction is over thing would annoy me. I'm also not a fan of occupency fees.
I really just want to move out...and have a big party :tongue2
Thanks so much for your input. |
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